VYM vs XFLT
VYM vs XFLT
Vanguard High Dividend Yield ETF vs XAI Octagon Floating Rate & Alternative Income Trust
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | VYM | XFLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 6.29% | |
| AUM | $79.0B | $345M | |
| Dividend Yield | 2.86% | 16.04% | |
| Holdings | 568 | 535 | |
| YTD Return | +15.45% | -6.40% | |
| 1Y Return | +26.05% | -14.19% | |
| 3Y Return (annualized) | +17.96% | -1.90% | |
| 5Y Return (annualized) | +12.54% | -1.99% | |
| Volatility (annualized) | 14.6% | 25.7% | |
| Max Drawdown | -58.8% | -64.6% | |
| Fund Family | Vanguard (US) | XA Investments LLC | |
| Category | Equity | Fixed Income | |
| Inception | Nov 10, 2006 | Sep 27, 2017 |
VYM vs XFLT Performance
Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US) and XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is a ETF from XA Investments LLC. Over the past year VYM returned +26.05% while XFLT returned -14.19%. Year to date, VYM is up 15.45% versus a loss of 6.40% for XFLT.
Over three years, VYM compounded at +17.96% per year against -1.90% for XFLT; over five years the annualized figures are +12.54% and -1.99% respectively. Across the full 9-year window we track, VYM has the edge at +7.06% annualized vs -1.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XFLT has been the more volatile fund, with annualized monthly volatility of 25.7% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -58.8% for VYM and -64.6% for XFLT. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VYM charges 0.04% per year while XFLT charges 6.29%. On a $10,000 position that is $4 vs $629 annually, a gap of $625 per year that compounds over a long holding period. On income, VYM currently yields 2.86% against 16.04% for XFLT.
Holdings Overlap
VYM and XFLT share 1 holdings out of 773 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VYM | Weight in XFLT | Difference |
|---|---|---|---|
| PPG | 0.12% | 1.32% | 1.20% |
Frequently Asked Questions
Which is cheaper, VYM or XFLT?
VYM has an expense ratio of 0.04% while XFLT charges 6.29%. VYM is the cheaper option. On a $10,000 investment, that is $625 per year of difference.
Which performed better, VYM or XFLT?
Over the past year VYM returned +26.05% vs -14.19% for XFLT, so VYM leads on 1-year performance. Over the longest common window we track (9 years), VYM annualized +7.06% vs -1.87% for XFLT. Past performance does not guarantee future results.
Which is riskier, VYM or XFLT?
XFLT has been the more volatile fund at 25.7% annualized versus 14.6% for VYM. Worst drawdown: VYM -58.8% vs XFLT -64.6%.
Should I hold both VYM and XFLT?
VYM and XFLT have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VYM and XFLT?
VYM and XFLT share 1 common holdings with a 0.1% weight overlap. Combined, they hold 773 unique securities.
Which pays a higher dividend, VYM or XFLT?
VYM yields 2.86% while XFLT yields 16.04%, so XFLT currently pays the higher dividend yield.
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